Q4 revenue increases 31% to $3.1 million
4Q gross profit increases to $2.0 million, or 65% of total revenue
267% increase in 2024 shareholders' equity compared to 2023
Company expanded Nova Ortho and Spine footprint and enhanced patient volume in 2024
LEXINGTON, KY / ACCESS Newswire / March 17, 2025 / Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its fourth quarter and full year ended December 31, 2024.
Alex Cunningham, Chief Executive Officer of Cardiff Lexington, commented, "In the fourth quarter we reported 31% revenue growth with 65% gross margins and strong adjusted EBITDA, capping off a year of solid execution delivering world class care to our patients. We opened two new Nova Ortho and Spine locations during the year: Our Valdosta, Georgia location, opened in February 2024, is our first location outside the state of Florida, and our Orlando location, opened in July, establishes Nova Ortho and Spine in a major metropolitan area with greater population density and higher patient traffic. Our patient volume improved throughout the year, and we expect to continue growing our patient network as we expand into new locations.
"That said, this year was not without its challenges," Mr. Cunningham continued. "Hurricane Helene forced us to halt operations across all Nova Ortho and Spine locations in Florida for multiple weeks in September. Additionally, we recognized one-time, non-cash adjustments in the first three quarters of 2024 totaling $2.8 million to better align revenue with 2024 annualized claim settlement realization rates. It is important to note that our 2024 non-GAAP adjusted revenue, which excludes these non-cash adjustments, was $11.1 million.
"Looking forward, demand is as strong as it has ever been at our clinics, and we continue to explore acquisition opportunities to further broaden our footprint. Our balance sheet is significantly improved with shareholders' equity increasing 267% compared to 2023, and we are well positioned to capitalize on the many opportunities that we're seeing in the market to drive growth and value in fiscal 2025," Mr. Cunningham concluded.
Fourth Quarter 2024 Financial Highlights (Compared to Fourth Quarter 2023)
Total revenue increased 31% to $3,120,710
Gross profit increased to $2,020,847, or 65% of total revenue
Income from continuing operations decreased 20% to $332,147
Non-GAAP adjusted EBITDA increased 20% to $579,370
Non-GAAP adjusted EBITDA excluding other non-recurring costs increased 85% to $894,202
Balance Sheet Highlights (December 31, 2024, compared to December 31, 2023)
37% increase in cash to $1,188,185
15% increase in total assets to $23,925,679
267% increase in shareholders' equity to $2,685,169
-----
About Cardiff Lexington Corporation:
Cardiff Lexington Corporation is a unique targeted healthcare holding company focused on locating, acquiring, and building middle market, niche companies, primarily in Orthopedics, Spine Care, and Pain Management. Fundamental to the Cardiff Lexington strategy is the service-based partnership culture which emphasizes core values, teamwork, accountability, and performance.
A substantial majority of the Company's revenue is derived from Nova Ortho and Spine, LLC, which operates a group of regional primary specialty and ancillary care facilities throughout Florida and Georgia that provide traumatic injury victims with a full range of diagnostic and surgical services, primary care evaluations, interventional pain management, and specialty consultation services.
For more information on Cardiff Lexington Corporation, you may access the company's website at https://cardifflexington.com/
FORWARD LOOKING STATEMENT: This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. These risks include the failure to meet schedule or performance requirements of the Company's business, the Company's liquidity position, the Company's ability to obtain new business, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.
Use of Non-GAAP Financial Measures
Cardiff Lexington Corporation prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to GAAP disclosures, this document contains financial information and measures considered to be "non-GAAP". These non-GAAP measures can be used in order to gain a more complete and accurate understanding of the Company's financial condition and results. Non-GAAP financial measures should be considered in conjunction with, and not as a substitute to GAAP financial measures.
Cardiff Lexington Investor Relations
investorsrelations@cardifflexington.com
(800) 628-2100 ext. 705
or
IMS Investor Relations
cardifflexington@imsinvestorrelations.com
(203) 972-9200
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2023
| Unaudited |
|
| Audited |
| |||||||||||
| For the Three Months Ended |
|
| For the Year Ended |
| |||||||||||
| Dec 31, |
|
| Dec 31, |
|
| Dec 31, |
|
| Dec 31, |
| |||||
| 2024 |
|
| 2023 (Restated) |
|
| 2024 |
|
| 2023 (Restated) |
| |||||
Total revenue |
| $ | 3,120,710 |
|
| $ | 2,376,502 |
|
| $ | 8,270,126 |
|
| $ | 11,853,266 |
|
Total cost of sales |
|
| 1,099,863 |
|
|
| 971,217 |
|
|
| 3,841,628 |
|
|
| 3,560,624 |
|
Gross profit |
|
| 2,020,847 |
|
|
| 1,405,285 |
|
|
| 4,428,498 |
|
|
| 8,292,642 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense |
|
| 3,365 |
|
|
| 9,412 |
|
|
| 13,461 |
|
|
| 20,777 |
|
Selling, general and administrative |
|
| 1,440,835 |
|
|
| 981,209 |
|
|
| 4,063,816 |
|
|
| 3,076,820 |
|
Stock compensation expense |
|
| 244,500 |
|
|
| 0 |
|
|
| 544,725 |
|
|
| 0 |
|
Total operating expenses |
|
| 1,688,700 |
|
|
| 990,621 |
|
|
| 4,622,002 |
|
|
| 3,097,597 |
|
(Loss) income from continuing operations |
|
| 332,147 |
|
|
| 414,664 |
|
|
| (193,504 | ) |
|
| 5,195,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense |
|
| (642 | ) |
|
| (49,999 | ) |
|
| (5,362 | ) |
|
| (49,795 | ) |
Gain on debt refinance, forgiveness and settlement |
|
| 0 |
|
|
| 115,058 |
|
|
| 78,834 |
|
|
| 115,448 |
|
Penalties and fees |
|
| 0 |
|
|
| (5,000 | ) |
|
| (1,330 | ) |
|
| (53,000 | ) |
Interest expense |
|
| (1,241,847 | ) |
|
| (192,568 | ) |
|
| (3,045,504 | ) |
|
| (1,956,266 | ) |
Amortization of debt discounts |
|
| 0 |
|
|
| (41,854 | ) |
|
| (24,821 | ) |
|
| (136,518 | ) |
Total other expense |
|
| (1,242,489 | ) |
|
| (174,363 | ) |
|
| (2,998,183 | ) |
|
| (2,080,131 | ) |
Net (loss) income before discontinued operations |
|
| (910,342 | ) |
|
| 240,301 |
|
|
| (3,191,687 | ) |
|
| 3,114,914 |
|
Loss from discontinued operations |
|
| 0 |
|
|
| 6,485 |
|
|
| (111,312 | ) |
|
| (86,520 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (loss) income |
| $ | (910,342 | ) |
| $ | 246,786 |
|
| $ | (3,302,999 | ) |
| $ | 3,028,394 |
|
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND DECEMBER 31, 2023
| December 31, |
|
| December 31, |
| |||
| 2024 |
|
| 2023 |
| |||
ASSETS |
|
|
|
| (Restated) |
| ||
Current assets |
|
|
|
|
|
| ||
Cash |
| $ | 1,188,185 |
|
| $ | 866,943 |
|
Accounts receivable-net |
|
| 15,934,490 |
|
|
| 13,305,254 |
|
Prepaid and other current assets |
|
| 89,901 |
|
|
| 5,000 |
|
Total current assets |
|
| 17,212,576 |
|
|
| 14,177,197 |
|
|
|
|
|
|
|
|
| |
Property and equipment, net |
|
| 21,198 |
|
|
| 34,661 |
|
Land |
|
| 540,000 |
|
|
| 540,000 |
|
Goodwill |
|
| 5,666,608 |
|
|
| 5,666,608 |
|
Right of use - assets |
|
| 406,950 |
|
|
| 289,062 |
|
Due from related party |
|
| 4,979 |
|
|
| 4,979 |
|
Other assets |
|
| 73,368 |
|
|
| 33,304 |
|
Total assets |
| $ | 23,925,679 |
|
| $ | 20,745,811 |
|
|
|
|
|
|
|
|
| |
LIABILITIES, MEZZANINE EQUITY AND DEFICIENCY IN STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expense |
| $ | 1,379,760 |
|
| $ | 2,047,131 |
|
Accrued expenses - related parties |
|
| 4,553,057 |
|
|
| 4,733,057 |
|
Accrued interest |
|
| 429,200 |
|
|
| 620,963 |
|
Right of use - liability |
|
| 223,330 |
|
|
| 157,669 |
|
Due to director and officer |
|
| 0 |
|
|
| 120,997 |
|
Notes - current portion |
|
| 312,180 |
|
|
| 15,977 |
|
Line of credit |
|
| 8,645,991 |
|
|
| 2,120,100 |
|
Convertible notes payable, net of debt discounts of $0 and $24,821, respectively |
|
| 105,000 |
|
|
| 3,807,030 |
|
Net liabilities of discontinued operations |
|
| 238,285 |
|
|
| 237,643 |
|
Total current liabilities |
|
| 15,886,803 |
|
|
| 13,860,567 |
|
|
|
|
|
|
|
|
| |
Other liabilities |
|
|
|
|
|
|
|
|
Notes payable |
|
| 251,725 |
|
|
| 144,666 |
|
Operating lease liability - long term |
|
| 185,877 |
|
|
| 119,056 |
|
Total liabilities |
|
| 16,324,405 |
|
|
| 14,124,289 |
|
|
|
|
|
|
|
|
| |
Mezzanine equity |
|
|
|
|
|
|
|
|
Redeemable Series N Senior Convertible Preferred Stock1 - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 921,636 and 868,056 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 3,339,317 |
|
|
| 3,891,439 |
|
Redeemable Series R Senior Convertible Preferred Stock - 5,000 shares authorized, $0.001 par value, stated value of $1,200, 0 and 165 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 0 |
|
|
| 307,980 |
|
Redeemable Series X Senior Convertible Preferred Stock2 - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 397,464 and 375,000 shares issued and outstanding at December 31, 2024 and 2023 |
|
| 1,576,788 |
|
|
| 1,690,685 |
|
Total Mezzanine Equity |
|
| 4,916,105 |
|
|
| 5,890,104 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity |
|
|
|
|
|
|
|
|
Series B Preferred Stock3 - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 1,279,867 and 2,139,478 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 5,119,468 |
|
|
| 8,557,912 |
|
Series C Preferred Stock3 - 500 shares authorized, $0.001 par value, stated value of $4.00, 74 and 123 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 296 |
|
|
| 492 |
|
Series E Preferred Stock3 - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 175,375 and 155,750 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 701,500 |
|
|
| 623,000 |
|
Series F-1 Preferred Stock3 - 50,000 shares authorized, $0.001 par value, stated value $4.00, 3,875 and 35,752 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 15,500 |
|
|
| 143,008 |
|
Series I Preferred Stock3 - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 10,469,092 and 14,885,000 issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 41,876,368 |
|
|
| 59,540,000 |
|
Series J Preferred Stock3 - 2,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 1,713,584 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 0 |
|
|
| 6,854,336 |
|
Series L Preferred Stock3 - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at December 31, 2024 and 2023 |
|
| 1,277,972 |
|
|
| 1,277,972 |
|
Series Y Senior Convertible Preferred Stock4 - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 979,125 and 0 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 3,916,500 |
|
|
| 0 |
|
Common Stock; 7,500,000,000 shares authorized, $0.001 par value; 15,300,475 and 14,555,601 shares issued and outstanding at December 31, 2024 and 2023, respectively |
|
| 15,300 |
|
|
| 25 |
|
Additional paid-in capital |
|
| 22,711,350 |
|
|
| -7,581,212 |
|
Accumulated deficit |
|
| -72,949,085 |
|
|
| -68,684,115 |
|
Total stockholders' equity |
|
| 2,685,169 |
|
|
| 731418 |
|
Total liabilities, mezzanine equity and stockholders' equity |
| $ | 23,925,679 |
|
| $ | 20,745,811 |
|
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2023
The following table reconciles Net (loss) income before discontinued operations (a GAAP measure) to EBITDA (a non-GAAP measure)
| Unaudited |
|
| Audited |
| |||||||||||
| For the Three Months Ended |
|
| For the Year Ended |
| |||||||||||
| December 31, |
|
| December 31, |
| |||||||||||
| 2024 |
|
| 2023 (Restated) |
|
| 2024 |
|
| 2023 (Restated) |
| |||||
EBITDA (1) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net (loss) income before discontinued operations |
| $ | (910,342 | ) |
| $ | 240,301 |
|
| $ | (3,191,687 | ) |
| $ | 3,114,914 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
| 1,241,847 |
|
|
| 192,568 |
|
|
| 3,045,504 |
|
|
| 1,956,266 |
|
Taxes |
|
| 0 |
|
|
| 0 |
|
|
| 0 |
|
|
| 0 |
|
Depreciation |
|
| 3,365 |
|
|
| 9,412 |
|
|
| 13,461 |
|
|
| 20,777 |
|
Amortization |
|
| 0 |
|
|
| 41,854 |
|
|
| 24,821 |
|
|
| 136,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
EBITDA (1) |
| $ | 334,870 |
|
| $ | 484,135 |
|
| $ | (107,901 | ) |
| $ | 5,228,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
| $ | 334,870 |
|
| $ | 484,135 |
|
| $ | (107,901 | ) |
| $ | 5,228,475 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in estimate for settlement realization rate |
|
| 0 |
|
|
| 0 |
|
|
| 1,650,474 |
|
|
| 0 |
|
Stock compensation expense for shares issued |
|
| 244,500 |
|
|
| 0 |
|
|
| 544,725 |
|
|
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA (2) |
| $ | 579,370 |
|
| $ | 484,135 |
|
| $ | 2,087,298 |
|
| $ | 5,228,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(1) EBITDA is a non-GAAP financial measure defined as Earnings Before Interest, Income Tax, Depreciation and Amortization. |
|
|
|
|
|
| ||||||||||
(2) Adjusted EBITDA is a non-GAAP financial measure that is the sum of EBITDA plus non-recurring and non-cash charges. |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA excluding other non-recurring costs (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA |
| $ | 579,370 |
|
| $ | 484,135 |
|
| $ | 2,087,298 |
|
| $ | 5,228,475 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scaling and restructuring costs for business growth |
|
| 284,252 |
|
|
| 0 |
|
|
| 764,778 |
|
|
| 0 |
|
Acquisition related costs |
|
| 30,581 |
|
|
| 0 |
|
|
| 30,581 |
|
|
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA excluding other non-recurring costs (3) |
| $ | 894,202 |
|
| $ | 484,135 |
|
| $ | 2,882,657 |
|
| $ | 5,228,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(3) Adjusted EBITDA excluding other non-recurring costs is a non-GAAP financial measure that is the sum of Adjusted EBITDA plus other non-recurring costs. |
|
| ||||||||||||||
CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF REVENUE FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024
(UNAUDITED)
| For the Three Months Ended |
|
| For the Twelve Months Ended |
| |||
| December 31, 2024 |
|
| December 31, 2024 |
| |||
|
|
|
|
|
| |||
GAAP Revenue |
| $ | 3,120,710 |
|
| $ | 8,270,126 |
|
Adjustments to Claim Settlement Realization Rate |
|
| - |
|
|
| 2,849,629 |
|
Non-GAAP Adjusted Revenue |
|
| 3,120,710 |
|
|
| 11,119,755 |
|
The adjustment to claim settlement realization rate recorded in Q1 $339,834, Q2 $859,321 and Q3 $1,650,474
SOURCE: Cardiff Lexington Corporation
View the original press release on ACCESS Newswire
